Cambricon(688256) 光大证券·2024-06-20 13:02Investment Rating - The report maintains a "Buy" rating for the company, Cambricon Technologies (寒武纪-U) [3][4]. Core Insights - Cambricon Technologies is a leading AI chip company in China, focusing on the development and innovation of AI chips, with a strong emphasis on research and development to build a competitive moat [10][12]. - The company achieved revenue of 709 million yuan in 2023, a year-on-year decline of 2.70%, and a net loss of 848 million yuan, although the loss has narrowed compared to the previous year [17][18]. - The AI chip market is expected to grow significantly, with AMD projecting a market size of $400 billion by 2027, and the ongoing U.S. sanctions are likely to enhance the market share of Chinese AI chips [23][31]. Summary by Sections 1. Company Overview - Cambricon Technologies specializes in AI chip development and has a comprehensive grasp of core technologies related to general-purpose AI chips and their foundational system software [10][12]. - The company has developed a series of products including cloud-based AI chips and accelerators, edge computing devices, and terminal processors, aiming to meet the growing demand in the AI market [10][12]. 2. Financial Performance - In 2023, the company reported a revenue of 709 million yuan, with a net loss of 848 million yuan, showing a reduction in losses compared to the previous year [17][18]. - The first quarter of 2024 saw revenue of 26 million yuan and a net loss of 22.7 million yuan [17]. - The company has set ambitious revenue targets in its stock incentive plan, aiming for at least 1.1 billion yuan in 2024 and a cumulative revenue of 2.6 billion yuan from 2024 to 2025 [12][16]. 3. Market Potential - The global AI chip market is vast, with increasing demand driven by advancements in AI applications and the ongoing arms race in computing power [23]. - The U.S. government's sanctions on companies like NVIDIA are expected to accelerate the domestic replacement of AI chips, benefiting companies like Cambricon [31]. 4. Product Development - Cambricon has developed a robust product matrix, including cloud-based AI chips and accelerators, which are being applied across various industries such as internet services, finance, and energy [10][12]. - The company’s foundational system software, Cambricon Neuware, supports mainstream AI programming frameworks, enhancing the usability of its AI chips [10][12]. 5. Future Outlook - The company is well-positioned to benefit from the expanding AI chip market, with projections for revenue growth to 1.794 billion yuan in 2024 and 2.697 billion yuan in 2025 [3][4]. - The ongoing development of AI technologies and the increasing complexity of AI applications are expected to drive demand for Cambricon's products [23][31].